Tag Archives: HSBC

The Office of the Comptroller of the Currency released its first quarterly Mortgage Metric Report for 2017, detailing servicing data for seven major national banks. See how they fared compared to last quarter.

HSBC has fulfilled its obligations under the National Mortgage Settlement (NMS), according to a compliance report released on Wednesday. The report is the second of its kind released on the bank since February of last year, when HSBC initially agreed to a $601 million settlement with several federal agencies and U.S. states regarding questionable servicing and foreclosure practices. Today’s report revealed HSBC has now met all requirements outlined in that February 2016 settlement.

BlackRock Inc., along with 23 other investors of residential mortgage-backed securities, petitioned New York federal Judge Lorna G. Schofield to hear oral arguments to advance their case to class status as they seek to collect over $3 billion in lost assets from HSBC. The initial suit claims that HSBC did not do its due diligence in protecting certificate holders, and that they failed to ensure the home loans being sold from mortgage originators and sponsors to the trust were only selling debt from credit-worthy borrowers. The plaintiff’s claim that HSBC’s direct neglect was the cause of loses when default rates hit their peak during the housing crisis.

An independent monitor for the 2012 National Mortgage Settlement has issued a report that SunTrust has fallen short in the progress with the NMS requirements, while HSBC’s first monitor report has passed with flying colors.

The Department of Justice (DOJ) announced Friday that HSBC Bank has reached a settlement with several federal agencies and almost every state attorney general regarding "mortgage origination, servicing, and foreclosure abuses."

A New York court has dismissed a lawsuit filed by the state's attorney general against HSBC Mortgage Corporation nearly two years ago which alleged that HSBC failed to follow the state law related to foreclosure actions.

In a settlement announced Friday, HSBC agreed to pay $550 million to FHFA to resolve allegations it violated state and federal securities laws in its selling of private-label securities to the GSEs between 2005 and 2007. HSBC stopped issuing and distributing MBS in 2007.

HSBC has reached a settlement with the federal government related to its failure, prior to 2011, to oversee the reasonableness of the third party foreclosure related fees that it submitted to the Federal Housing Administration (FHA) and the Fannie Mae for reimbursement. The servicer will pay a $10 Million penalty.

HSBC faces a lawsuit from New York Attorney General Eric T. Schneiderman, who accused the bank of failing to follow a state foreclosure law that mandates a settlement conference for past due borrowers. In a statement, Schneiderman announced he filed a lawsuit against HSBC, alleging the bank repeatedly failed to file a Request for Judicial Intervention (RJI) in a timely manner. According to Schneiderman, delays in filing the RJI increase the risk that homeowners will lose their home and leads to a backlog of foreclosure cases.

HSBC is the latest bank joined in on the foreclosure settlement with federal regulators over allegations that the bank's practices led to wrongful foreclosures. The Federal Reserve Board and Office of the Comptroller of the Currency (OCC) announced HSBC will pay $249 million, with $96 million for direct payments to eligible borrowers and $153 million for mortgage assistance.